Goldman Sachs Boosts Wafer Fabrication Equipment Spending Projections Through 2028

Goldman Sachs has significantly increased its estimates for wafer fabrication equipment (WFE) spending through 2028, citing positive semiconductor capital expenditure data from second-quarter earnings season. The investment bank now projects WFE spending of $150 billion in 2026, a 36% increase year-over-year, and $281 billion in 2028, a 29% increase.

The revised forecasts reflect substantial capital expenditure revisions and more constructive outlooks from semiconductor processing equipment suppliers. Goldman Sachs identifies DRAM and leading-edge foundry as near-term drivers of WFE momentum, with NAND and Logic markets expected to contribute in the medium term.

The firm maintains a bullish stance on semiconductor capital equipment stocks and highlights seven companies as top picks: Applied Materials, Lam Research, ASML, Tokyo Electron, ASMI, BESI, and Lasertec. Goldman Sachs expects the DRAM industry to remain capacity constrained through 2028 despite higher spending levels.